Behavioral Advertising | Privacy and Information Security Law Blog

FTC Reaches Settlement with Myspace for Misleading Statements in Privacy Policy

Posted on May 8, 2012 by Hunton & Williams LLP

On May 8, 2012, the Federal Trade Commission announced a settlement agreement with the social networking service Myspace LLC (“Myspace”). The FTC alleged that Myspace’s practice of sharing users’ personal information with unaffiliated third-party advertisers conflicted with representations the company made in its privacy policy, and could allow those advertisers to obtain users’ names, publicly available information and information about their online browsing habits.

Tags: Anonymization, Consent Order, Cookies, Encryption, Federal Trade Commission, MySpace, Personally Identifiable Information, Privacy Policy, Safe Harbor, Social Media

FTC Privacy Report Emphasizes Privacy by Design, Individual Control and Transparency

Posted on March 27, 2012 by Hunton & Williams LLP

On March 26, 2012, the Federal Trade Commission issued a new privacy report entitled “Protecting Consumer Privacy in an Era of Rapid Change: A Proposed Framework for Businesses and Policymakers.” The report charts a path forward for companies to act in the interest of protecting consumer privacy.

In his introductory remarks, FTC Chairman Jon Leibowitz indicated his support for Do Not Track stating, “Simply put, your computer is your property; no one has the right to put anything on it that you don’t want.” In later comments he predicted that if effective Do Not Track mechanisms are not available by the end of this year, the new Congress likely would introduce a legislative solution.

Tags: Accountability, APEC, Consent Order, Consumer Protection, Department of Commerce, Do Not Track, EU Data Protection Directive, Facebook, Federal Trade Commission, Google, Jon Leibowitz, Legislation, Obama, OECD, Privacy By Design

Digital Advertising Alliance Supports Browser-Based Choice Mechanism

Posted on February 28, 2012 by Hunton & Williams LLP

The Digital Advertising Alliance (“DAA”) recently announced that its members will work “to add browser-based header signals to the set of tools by which consumers can express their preferences” not to be tracked online and will work with browser providers to develop “consistent language across browsers…that describes to consumers the effect of exercising such choice.”

This announcement came on the heels of the Obama administration’s release of a framework for a Consumer Privacy Bill of Rights. The DAA’s agreement represents the industry’s attempt to appease consumer privacy concerns in the face of the growth of online advertising. The DAA represents over 400 advertising and technology companies.

Tags: Advertisement, Consumer Protection, Do Not Track, Facebook

FTC Settles with Alleged Stealth Behavioral Advertising Targeter

Posted on January 9, 2012 by Hunton & Williams LLP

On January 5, 2012, the Federal Trade Commission announced a proposed settlement with Upromise, Inc., a membership reward service that gives cash rebates for college savings accounts to members who purchase products and services from its partner merchants. The FTC alleged that the “Personalized Offers” feature on the Upromise TurboSaver Toolbar (1) collected far more information about users’ browsing behavior than was disclosed at the time of installation, and (2) contrary to representations in the company’s privacy notice, transmitted that information, which included data such as Social Security numbers and financial account numbers, in clear text.

Tags: Advertisement, Consent Order, Consumer Protection, Federal Trade Commission, Personally Identifiable Information, Social Security Number

UK ICO Releases Updated Cookie Compliance Guidance

Posted on December 29, 2011 by Hunton & Williams LLP

On December 13, 2011, the Information Commissioner issued updated guidance on compliance with recent changes to UK law governing the use of cookies (The Privacy and Electronic Communications (EC Directive) (Amendment) Regulations 2011 (“Regulations”)). Organizations were given a twelve-month grace period to comply with the new law. Initial guidance on the Regulations was released on May 9, 2011, but the Information Commissioner characterized that guidance as merely a “starting point for getting compliant rather than a definitive guide,” signaling that further advice would follow if appropriate. The release of the updated guidance coincides with the Information Commissioner’s interim report on organizations’ attempts to achieve compliance in which he concluded that organizations “must try harder” with their cookie compliance efforts.

Tags: Consumer Protection, Cookies, Information Commissioners Office, Opt-In Consent, United Kingdom

Article 29 Working Party Rejects Industry Self-Regulatory Code on Online Behavioral Advertising

Posted on December 16, 2011 by Hunton & Williams LLP

On December 8, 2011, the Article 29 Working Party (the “Working Party”) adopted an Opinion on the European Advertising Standards Alliance (“EASA”) and IAB Europe best practice recommendations for the online behavioral advertising (“OBA”) industry to comply with Article 5.3 of the revised e-Privacy Directive 2002/58/EC (the “cookie clause”). The cookie clause requires a user’s informed consent for the use of cookies and similar technologies that store and access information in the user’s terminal device. Finding practical ways of complying with the cookie clause has proven challenging for the OBA industry, which relies heavily on these kinds of tracking mechanisms.

Tags: Advertisement, Article 29 Working Party, Cookies, E-Privacy Directive, Opt-In Consent

Facebook Settles FTC Charges

Posted on November 29, 2011 by Hunton & Williams LLP

On November 29, 2011, the Federal Trade Commission announced that Facebook has settled charges that it deceived consumers by making false privacy promises. The settlement requires Facebook to (1) not misrepresent how it maintains the privacy or security of users’ personal information (2) obtain users’ “affirmative express consent” before sharing their information with any third party that “materially exceeds the restrictions imposed by a user’s privacy setting(s),” (3) implement procedures to prevent a third party from accessing users’ information no later than 30 days after the user has deleted such information or terminated his or her account, (4) establish, implement and maintain a comprehensive privacy program, and (5) obtain initial and biennial assessments and reports regarding its privacy practices for the next 20 years.

Tags: Consent Order, Consumer Protection, Electronic Privacy Information Center, Facebook, Federal Trade Commission, Jay Rockefeller, Jon Leibowitz, Social Media

Congressmen Markey and Barton Address Verizon’s Targeted Advertising Campaign

Posted on November 7, 2011 by Hunton & Williams LLP

On November 4, 2011, Congressmen Edward Markey (D-MA) and Joe Barton (R-TX) reiterated their privacy concerns over the handling of customer preferences in connection with Verizon’s new advertising initiative. After learning that Verizon had notified its customers of the implications of a targeted advertising campaign, on October 6, 2011, Reps. Markey and Barton, Co-Chairmen of the bipartisan Congressional Privacy Caucus, wrote a letter containing several inquiries to both Verizon and Verizon Wireless. In particular, Reps. Markey and Barton requested clarification regarding the companies’ potential disclosure of aggregated customer location information and website viewing history to third parties.

Tags: Advertisement, Congress, Consumer Protection, Edward Markey, Geolocation, Joe Barton, Opt-In Consent, Telecommunications

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Digital Advertising Alliance Supports Browser-Based Choice Mechanism

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